JP Morgan - good long term buy?
Answers
457 points
SallyG answered one year ago …
I've always thought JPM and GS were two of the better bank stocks, though I haven't invested in them. Now Warren Buffett has invested in GS and John Pierpont must be smiling somewhere as his eponymous company gets help on the anniversary of his aid to Pres. T. Roosevelt in 1907. Karma has certainly taken a long time to reward that in kind!
Seriously, I note that JPM's stock has been in the 38-41 range for a long time, which argues for stability, something of a rare advantage in this market, IMHO.
3963 points
MNSL answered one year ago …
Once it develop into firm base and if you think that you can follow the line of least resistance, can follow the trend and identify pivotal points then you can trade and invest in the JP Morgan.
I think time management is very important if you invest in banks like JP Morgan, Goldman now. Their fundamentals are very weak now. You must invest in the correct time.
Anything can happen for some top banks in the next 12 months. Some investors prefer to invest in banks, which are concentrated on the core businesses now.
110 points
rajinder answered one year ago …
whatever the JP morgan has done by acquiring the Bear sterns for $2 per share was great in business point of view & federal reserve bank also provide finance 4 that. deal was closed at $236.2 million which leads to the collapse of U.S. 5th largest investment bank. it will really be beneficial on long term basis to JP morgan
but large population gets unemployed from it by that acquisition which the govt. also have 2 be kept in mind.otherwise it is best deal from morgan point of view on long term basis to giving it more market value & make it best out of others
989 points
rvilmur answered one year ago …
Long term, certainly JPM is a good buy. It will be one of the major survivor banks and with less competition should be able to generate good profits while staying conservative in its loan to capital ratio.
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249 points
engcomp answered one year ago …
Back in March, the Wall Street Journal reported the leverage ratios of major operators: Morgan Stanley 33:1; Lehman 31:1; Merrill Lynch 28:1, and Goldman Sachs 26:1.
If this report is accurate, I would wait until all the dominos have fallen to see who has survived. Lehman and Merrill are already gone. No doubt, the managements of Morgan and Goldman are smart and well connected in Washington. But a 33.1 assets to capital ratio in a bear market is a HUGE risk. A drop of 3% in the true value of the assets means a wipeout of the capital. Haven't assets across the board dropped by more than 3%? No wonder the Government wants you, the taxpayer, to through $700B at their friends.
203 points
Future1investor answered one year ago …
No problems with JP Morgan as a long term investment.
They are a club member who originally helped form the Federal Reserve which came into existence in 1913. The Fed was formed out of the self serving interests of the seven billionaires who created it.
You saw how Paulson quickly arranged for JP to consume Bear Stearns and Washinton Mutual right? With WaMu, JP now owns all the real estate which in and of itself is worth billions.
So if you felt the need to invest in a financial, JP Morgan Chase would be one of the last to fail.
Paulson by the way has created the newest investment firm headed by himself. Now he can say yet again to his buddies at Goldman Sachs: "Look at me fellas!" Funded by the $700 billion dollars of taxpayer monies.
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